Moldova: Taking Compliance Management Further
IMF Staff Country Reports, July 26, 2012
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- Canonical URL
- Moldova: Taking Compliance Management Further
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Bibliographic details
- Published: July 26, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475506501.002
Executive summary
- The report discusses implementation of the compliance risk model (CRM) by Moldova’s tax department.
- The CRM has shown encouraging results in 2011, in terms of extra revenue.
- For long-lasting impact, the model requires further improvement in taxpayer services, audit, tax fraud investigations, information technology, and the value-added tax refund system.
- The compliance plan for 2012 involves implementing measures within the segment of wealthy individuals.
Key findings
- CRM performance in 2011:
- Showed encouraging results in 2011, in terms of extra revenue.
- Structural and operational gaps identified:
- Taxpayer services need improvement.
- Audit capacity requires strengthening.
- Tax fraud investigations are insufficiently developed.
- Information technology systems are inadequate for full CRM implementation.
- The value-added tax refund system needs reform to support compliance objectives.
Policy recommendations and implementation priorities
- Strengthen taxpayer services to support voluntary compliance and reduce compliance costs.
- Enhance audit program and audit methodologies to focus resources on higher-risk taxpayers.
- Build specialized capacity for tax fraud investigations to detect and deter serious evasion.
- Upgrade information technology (IT) systems to enable CRM data analysis, case selection, and case management.
- Reform the value-added tax (VAT) refund system to reduce leakage and support the CRM.
- Implement the 2012 compliance plan with targeted measures in the wealthy individuals segment.
Content in this bundle
- Moldova: Taking Compliance Management Further; Country Report No. 12/199; April 1, 2012